Don’t miss the latest developments in business and finance.

Rupee falls 29 paise against dollar

Image
Our Banking Bureau Mumbai
Last Updated : Feb 14 2013 | 8:59 PM IST
The rupee weakened by 29 paise today as equity markets witnessed second biggest fall in percentage terms.
 
The rupee closed at Rs 45.48 per dollar against Rs 45.19 on Wednesday. The rupee had depreciated by 18 paise in the opening session on dollar demand from foreign institutional investors (FIIs).
 
Dealers said the government bond market on Wednesday witnessed a large scale selling of securities by foreign banks who act as custodian banks for FIIs operating in India and this was seen as a measure to arrange the necessary rupee liquidity for buying dollars.
 
The dollars were bought on Wednesday itself for being settled on Thursday, which led to the sharp fall in the spot rupee in the opening session, said a foreign exchange dealer.
 
The rupee's fall in the subsequent sessions was not in proportion to the fall in the BSE sensex throughout the day.
 
It closed fell by a further 11 paise after the the 18 paise fall in the opening session. The forward dollar market remained lacklustre as participants were focused on the spot market.
 
The six month and one year forward premium closed at 1.03 per cent and 1.06 per cent respectively.
 
The government securities market, on the other hand, remained bearish tracking the yields on the US treasury bonds. With the possibility of another rate hike becoming imminent, dealers said bankers have started selling government stock. The prices of government securities across maturities fell by 26-30 paise.
 
The yield on the ten year paper 7.59 per cent 2016 closed at 7.53 per cent as against a close of 7.50 per cent on Wednesday.
 
The sentiment was further marred by the announcement of the auction of central government paper for 15-year maturity to raise Rs 5,000 crore.

 
 

Also Read

First Published: May 19 2006 | 12:00 AM IST

Next Story